China May Create A $16 Billion Fund To Support Electric Cars

An employee checks
newly-assembled electric cars to be exported to South America at
an electric vehicle factory in Zouping county, Shandong province
September 24, 2013.REUTERS/China
Daily

China could deploy as much as 100 billion yuan, or $16 billion,
to build more charging facilities and spur demand for electric
vehicles, according to two people familiar with the matter,
BloombergBusinessweek reports.

The sources Bloomberg spoke with said the policy would be
announced soon, but they would not reveal details about things
like whether the chargers would be complementary with or
competitors to Tesla.

"Increased state funding would be a tailwind for carmakers
coping with consumer concerns over the price, reliability and
convenience of electric vehicles," Bloomberg writes. "It would
also build on efforts by China, the world’s biggest carbon
emitter, to fight pollution and cultivate its local EV industry,
which includes BYD Co. (1211) and Kandi Technologies Group Inc."

Tesla recently settled a trademark dispute with a Chinese
national, and CEO Elon Musk told investors on the company's most
recent conference call that the company was aiming to open 100
Tesla stores in China by the end of next year.

"I've been very impressed with the Tesla China team and the
quality of people that we're attracting in China,"
he said. "I mean I think the China team is smart and they
work super-hard, so. And the pace of progress is just amazing. So
I feel pretty comfortable about being able to do good service in
China or great service actually."